Louisiana Attorney General Liz Murrill sued 10 prediction platforms, including Coinbase, Robinhood and Polymarket, alleging they violated state laws and asking a court for an emergency restraining order.
According to The Block, the lawsuit also names Kalshi, ForecastEx, Crypto.com, Novig, Underdog, Gemini and ProphetX. Louisiana became the 11th state to sue at least one prediction platform. Kalshi, meanwhile, sought emergency preliminary relief, saying the state could take steps to restrict its operations in Louisiana.
Who has jurisdiction over sports predictions: the states or a federal agency?
The states’ objections focus particularly on contracts tied to sports outcomes. The states argue that these contracts are subject to their own betting rules, while the platforms contend that prediction markets should be regulated at the federal level by the U.S. Commodity Futures Trading Commission (CFTC).
Robinhood said its products are offered through Robinhood Derivatives, which is registered with the CFTC, and are subject to federal oversight. The CFTC has also asserted that it has regulatory authority, filing separate lawsuits against some states.
Not investment advice.